What are the 4 Segmentation Variables
Demographic, Geographic, Psychographic, and Behavioralistic
Taking a heterogeneous market and breaking it down into smaller homogeneous markets
Segmenting the market allows for...
Targeting those specific "segments" according to the segmentation variables
Values of segmenting and targeting.
Better understand needs, desires and motives of consumers.
Better understand why the buy or do not buy.
Ability to assess competitive strengths and weaknesses.
Ability to identify the promotional message to use.
Selecting a target market to serve and a differentiated targeting strategy.
Define Demographic Segmentation
The ovservable characterictics of individrals living in the culture.
i.e gender,age, race, education,and location and occupational related traits
How to Prioritize Target Segments
Determine Capabilities of the organization
Size and growth potential of the segment
Environmental Forces in International Markets
Cultural, Social and Ethical Forces
Largest Global Franchise
Largest Global Corps
Gas and oil companies
Define Consumer Behavior
The complex process by which individuals acquire use and dispose of products or services to satisfy their needs and desires.
What determines a consumer's level of involvement?
Personal Relevance. Whats important to YOU and how important is it.
ie. kids have a high involvement in deciding candy, because they love it.
For high involvement items which route would you take?
The central route. High involvement you evaluate the QUALity of the argument.
vs. Peripheral route you look at the QUANtity
5 Stage Process Consumers go through
Problem (need) recognition
How do you evaluate alternatives?
Cost in time and money
The root word "Satis" means...
Define Cognitive Dissonance
I bought this buy I should have bought this..
a= attitude towards something b= strength of belief E=importance
Personality and Need for affiliation
O - Openness: creative imaginative side
C - Conscientiousness: careful high attention to detail
E - Extroversion: how outgoing and friendly
A - Agree-ability: how much you cooperate
N - Neruticism: stability, degree of moodiness
M - Materialism: pleasure in gaining things
A - Arousal: needs excitement, always on the go
P - Physical: need for body